THE COMPANY:

Aylmer Industries Inc. $($Aylmer$)$ has been in business since Y$4.$ Aylmer has two main business segments. This first segment is the construction of large$-$scale projects. In Y$7,$ Aylmer had two large construction projects in process. The other segment is the sale of construction equipment. Details of the construction projects and the sale of construction equipm$\backslash$table$[[,\backslash$table$[[$Trial Balance$],[$At December $31,$ Y$6]$ent can be found later in this document and in the accompanying Excel file.

Aylmer has $75,000$ common shares outstanding, and the shares are publicly traded. Since Aylmer is a publicly traded company, it follows IFRS.

There are no preferred shares outstanding.

Aylmer posted accounting transactions throughout the year. The Excel unadjusted trial balance was prepared from the recorded transactions. Aylmer$$s fiscal year$-$end is December $31$st$.$ As a year$-$end review, management of Aylmer discovered that the following items have NOT been recorded and are NOT reflected in the unadjusted trial balance provided at December $31,$ Y$7.$ For any journal entries, use December $31$ as the date for the entries.

The accompanying Excel spreadsheet has important information and requirements. Please review the entire file carefully.

The unadjusted trial balance at December $31,$ Y$7$ and final trial balance at December $31,$ Y$6$ are provided in the Excel file for comparison purposes. Please see the Excel tab labelled $$Trial Balance$.$ Use this Excel file and this tab to post journal entries as required, and to ensure that the worksheet remains in balance. You should use the worksheet to provide the ending balances needed to prepare the financial statements at December $31,$ Y$7.$

Ignore income taxes for this project.

REQUIRED $($please read the entire document before starting the project$)$

Analyze and review the following items $($a $$ s$)$ and determine the appropriate journal entry, if any, required. Record the appropriate journal entry in the Excel tab labelled $$journal entries$.$ Use the various tabs in the Excel file to perform calculations and use the tabs as support for your journal entries, financial statement preparation, and notes to the financial statements.

Read the transactions below very carefully and the requirements that follow.

This project accounts for $20\%$ of your final grade and is due on Sunday December $3,2023$ @$11$:$59$ pm$.$

You should complete this project on your own but please ask questions as you progress through the project. If there is time, classes may be allocated to questions related to the project.

NOTE $$ before you begin the Excel work, enter your student ID number on the Excel tab $$Students First Step$$ as indicated.

See the $$REQUIRED$$ section below for important information.

TRANSACTIONS NOT INCLUDED IN THE UNADJUSTED TRIAL BALANCE at DECEMBER $31,$ Y$7$:

a$.$ Cash & Equivalents

In the Excel spreadsheet, see the details for the cash equivalents in order to accrue interest earned, if needed.

b$.$ Calculate bad debt

On December $31,$ after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance.

Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be:

$0-30$ days $1\mathrm{.}80\%$

$3160$ days $8\mathrm{.}00\%$

$6190$ days $10\mathrm{.}00\%$

$91120$ days $20\mathrm{.}00\%$

Over $120$ days $50\mathrm{.}00\%$

In the Excel spreadsheet, see the tab labelled $$Trade Accounts Receivable Detail$$ to perform any necessary calculations.

c$.$ FV$-$NI Investments

At December $31,$ Y$7$; the fair value of the short$-$term investments were:

Redemption Corp $$12\mathrm{.}95$ per share

ALM Corp $$22\mathrm{.}25$ per share

In the Excel spreadsheet, see the tab $$FV$-$NI Investments$$ to perform any necessary calculations.

d$.$ Prepaid Insurance

A payment to State Farm Insurance was made on October $1,$ Y$7,$ with the entire amount posted to Prepaid Insurance. The policy lasts $18$ months. There are no other amounts included in Prepaid Insurance.

e$.$ Inventory

The company has the policy of stating all inventory on hand at the lower of cost and net realizable value. The company uses the direct method for any adjustments to inventory.

NOTE $$ on the Statement of Earnings use $$Cost of Goods Sold$$ from the trial balance as the expense $$ there is NO need to calculate the cost of goods sold, since it is given.

In the Excel spreadsheet, see the tab $$Inventory Detail$$ to perform any necessary calculations.

f$.$ Inventory on Consignment

At December $31,$ Y$7$; the company received the following information for inventory on consignment:

$1.$ All X$105$ machines were sold for $$13,450$ each.

$2.$ Three of the J$050$ machines were sold for $$6,880$ each.

The consignee received $5\mathrm{.}2\%$ commission on each sale and was allowed a $2\mathrm{.}50\%$ allowance for advertising. The consignee will pay the company the amount owed on January $15,$ Y$8.$

In the Excel spreadsheet, see the tab $$Inventory on Consignment$$ to perform any necessary calculations. Use $$Other Accounts Receivable$$ if needed for this transaction.

g$.$ Record Depreciation